I need the formula and the answer please
Dr. Moses Geepu-Nah Tiepoh Explain the shape of the production function graphed in part b. Reflecting the property of diminishing marginal productivity of labor due to crowding effects, the slope of the total product curve or production function flattens at higher levels of employment and output, after initially increasing sharply at lower levels of employment. Question 2 Suppose that a pizza maker spends a total of $1,000 in hourly wages to her workers. But suppose the pizza maker was also computer-educated and could have used her time to work as a programmer, being paid $150 per hour. a. What is the pizza maker's accounting cost? b. What is the pizza maker's economic cost? (Solved in class) Question 3 Suppose that the pizza maker used $200,000 of her own saving to build a pizza factory, and at an interest rate of, say 10% per year, she would have earned $20,000 per year if the money had been left in her saving account. a. What is the pizza maker's accounting cost? b. What is the pizza maker's economic cost? (Solved in class) Question 4 Your aunt is thinking about opening a hardware store. She estimates that it would cost $500,000 per year to rent the location and buy the stock. In addition, she would have quit her $50,000 per year job as a sales clerk. a. What is your aunt's opportunity (economic) cost of running the hardware for a year? b. If your aunt thought she could sell $510,000 worth of merchandise in a year, should she open the store? Explain. (Solved in Class) Question 5 Nimbus, Inc. makes brooms and then sells them door-to-door. Here is the relationship between the number of workers and Nimbus' output in a given day: Number Output Marginal Total Average Average Average Marginal of Product ost Variable Fixed Total Cost (MC) Workers (MPL) TC) Cost Cost Cost 0 0 200 1 20 20 300 5.00 10.00 15.00 5.00 50 30 400 4.0 3.00 3.33 N 4.00 3 90 40 500 3.33 2.22 .56 2.50 4 120 30 600 3.33 1.67 5.00 3.33 5 140 20 700 3.57 1.43 5.00 5.00 6 150 10 800 4.00 1.33 5.33 10.00 7 155 5 900 4.52 1.29 5.81 20.00 Fill in the column for marginal products (MPL). Using the formula for MPL, the above values are calculated.Dr. Moses Geepu-Nah Tiepoh b. A worker costs $100 a day, and the firm has a total fixed cost (FC) of $200. Using this information, fill in the columns for total cost (TC) and marginal cost (MC). c. Fill in the columns for average variable cost (AVC), average fixed cost (AFC), and average total cost (ATC). Using the formulas for AVC, AFC, and ATC, the above values are calculated. d. What is this firm's efficient scale? Qeff = 140 brooms